A Variable Factor of Production

question 125

Multiple Choice

A variable factor of production:

• A)is fixed in the long run but variable in the short run.
• B)plays no role in the law of diminishing marginal returns.
• C)is variable in both the short run and the long run.
• D)is variable only in the short run.

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Definitions:

Cost of Debt

The effective rate that a company pays on its current debt, incorporating interest payments and other related costs.

Revenue

Revenue is the total amount of money received by a company for goods sold or services provided during a specific period.

Cash Discount

A reduction in invoice amount offered by sellers to encourage early payment by buyers.

Incremental Investment

Additional funds invested in a project to generate more returns.